Cover Picture: Artwork by Doug Louez, Wellington. This page: Artwork by Lucinda Byrnes, Palmerston North. GOVERNANCE AND MANAGEMENT Contents ...... 1 Vision, Mission and Values Statements ...... 2 Directory...... 3 Organisational Chart ...... 4 Table of Contents Corporate Governance Statement ...... 5 Board of Trustees Profiles...... 6 - 7 Patron’s Message ...... 8 Chairperson’s Report ...... 9 Chief Executive’s Report ...... 10

HIGHLIGHTS OF THE YEAR Quality Report ...... 11 Business Excellence & Projects Report ...... 12 Human Resources and Learning & Development Report ...... 13 - 15 Operational Services - Overview ...... 16 - Vocational Services ...... 17 - Intellectual and Physical Disability Residential Services...... 18 - 19 - Mental Health and Addiction Services ...... 20 - 22 - Community Services ...... 23 - 24

FINANCIAL REPORT AND STATEMENTS for the year ending 30 June 2015 Corporate Services Report ...... 25 Statement of Comprehensive Revenue & Expense ...... 26 Statement of Changes in Assets/Equity...... 26 Statement of Financial Position ...... 27 Statement of Cash Flows ...... 28 Statement of Accounting Policies ...... 29 - 36 Notes to the Financial Statements ...... 37 - 46

AUDITORS REPORT ...... 47

Living Plus and AOD Services celebrate five years in their building with a combined breakfast get-together.

MASH Logo made from buttons - entry to the MASH Arts & Crafts competition. 1 VISION MASH is the Leader of Disability Support Services in the Lower North Island Vision, Mission & Values MISSION Working Together to Achieve Great Lives

VALUES Working Together to Achieve Great Lives, we will…. 1. Build open RELATIONSHIPS based on honesty and respect. 2. COMMUNICATE with an open mind and heart. 3. Recognise and promote the MANA and strengths of each individual. 4. Take OPPORTUNITIES to learn and grow together. 5. BELIEVE that together we will make a difference. 6. Make FUN a goal.

Cam Calkoen - guest speaker at the 2015 MASH Managers Forum.

2 NATURE OF BUSINESS The Trust provides community based health and disability support services for people with psychiatric, physical and intellectual disabilities.

REGISTERED OFFICE 602 - 606 Main Street P O Box 157 Directory Palmerston North as at 30 June 2015 CONTACT DETAILS PHONE: (06) 355-7200 FAX: (06) 355-7201 EMAIL: [email protected] WEBSITE: www.mashtrust.org.nz

PATRON Professor Nan Kinross CBE

TRUSTEES H Allan QSM, J.P. (Chairperson) J Doolan (Deputy Chairperson) D Ayling D Barrett J Fowke (from December 2014) S Mason J Nitschke P Rea W Tither (to March 2015) M Walsh

TRUST EXECUTIVE L C Searle (Chief Executive Officer)

AUDITORS Auditlink, Palmerston North

BANKERS ANZ Banking Group (New Zealand) Limited, Palmerston North

SOLICITOR Fitzherbert Rowe Lawyers, Palmerston North

BUSINESS LOCATIONS 602 Main Street, Palmerston North 83 Oxford Street, Levin

Heather Allan, Carol Searle, Lynne Phillips & Judy Pedersen receiving the NZBEF Bronze Excellence Award.

3 Organisational Chart

Living Plus PN receive a MASH Staff Excellence Award in the Fun Category.

4 T he MASH Trust Board works closely with the Management Team to ensure that the Trust complies with legal requirements and adopts a best practice approach to all governance matters.

MASH Trust has a skills based Board which ensures that, as the business Corporate Governance grows and develops, Board skills and expertise are also reviewed to provide the best possible mix of expertise to oversee the organisation. Statement Each year the Board undertakes learning and development and retains the services of leading governance experts to challenge our processes, review our practices and assist in strategic planning. The use of outside expertise is consistent with the quality framework that applies throughout the organisation, using a combination of benchmarking against international best practice and external review.

Responsibilities of the Board of Trustees The Board has developed a Governance Manual which is reviewed regularly to identify roles and responsibilities. The Board carries out its responsibilities to the following mandates:  The Trust Rules;  The number of Trustees on the Board should be no fewer than eight and no more than twelve;  The Board is required by its Rules to hold at least 10 ordinary meetings a year;  All information relating to items to be discussed at a meeting of the Board is provided to each trustee prior to the meeting; and  The Board and its members are subject to regular evaluation.

The primary responsibilities of the Board include;  Administering the Trust in accordance with the Trust Rules;  Ensuring the preparation of Annual Financial Statements;  Establishing long term goals for the Trust and the Strategic Plan to achieve those goals;  Reviewing and adopting annual budgets for financial performance of the Trust and monitoring results on a monthly basis;  Managing risk by ensuring that the Trust has implemented adequate systems of internal controls together with appropriate monitoring of compliance activities; and Christina & Sharyn accepting a Trustpower  Putting in place appropriate delegations to enable the Chief Community Award for the LUCK Venue. Executive Officer to manage the day-to-day operational activities of the Trust.

The Great KidsCan Santa Run - proudly organised by MASH Trust.

5 Heather Allan - RN RMN QSM JP (Chairperson) Appointed 1991 Heather has extensive experience in social services, the health and disability sector, local government and governance at local, regional and Board of Trustees national levels. She is a former member of the NZ Institute of Directors and currently Chairperson of the Manawatu Community Law Centre. Her - Profiles roles include being a member of the Finance, Audit and Risk Management Committee (FARM), Quality Governance Committee, CEO Assessment Committee (Chairperson), Property Sub-Committee and the Innovation Award Committee (Chairperson).

John Doolan – Dip. Bus. Studies, Institute of Financial Advisers Fellow (Deputy Chairperson) Appointed 2002 John has vast experience in Financial Planning and Risk Management and fundraising and has been involved for more than 39 years with the movement of disabled people from institutions to the community. His role includes being a member of the Finance, Audit and Risk Management Committee (FARM), the MASH Property Sub-Committee and is the Chairperson of the Whaioro Trust Board.

David Ayling - MBChB DipObs DipChHealth Appointed 2012 David is Clinical Director of the Youth Health Service for the Youth One Stop Shop. For Central PHO he is Clinical Lead for Collaborative Clinical Pathways and Mental Health. His additional work includes Medical Advisor to Central PHO, Chairperson of the Central PHO Clinical Board, membership of MidCentral Health Clinical Board, MidCentral DHB Clinical Leadership Council and Central PHO Alliance Leadership team. His role includes being a member of the MASH Quality Governance Committee.

David Barrett - MBChB (5th yr) MBA (part) Appointed 2007 David was appointed to the MASH Trust Board as the consumer representative in 2007. He acts in an advisory role to the Trust Board for people with disabilities. David holds a Certificate in Intentional Peer Support Endorsed in Mental Health and has been a Quality Auditor (Mental Health) since 2004 currently working with the DAA Group (MoH Standards). He has previous involvement in the Like Minds Like Mine Project (6 years). David is a member of the International Society of Neuro- semantics and Meta-coaches. His other roles include being a member of the MASH Quality Governance Committee, the Innovation Award Committee and the Property Sub-Committee. David is also a member of the Whaioro Trust Board and LUCK Venue Incorporated Board.

John Fowke – BCA LLB Appointed 2014 John Fowke joined the MASH Trust board in December 2014. John worked as a corporate lawyer and tax consultant prior to joining Toyota NZ in 1986 where he had various roles covering Dealers, Information Services, Legal, Marketing and Finance as well as Motor Racing. He is still an ambassador for the Toyota Racing Series. He joined the Trust Board of the Manawatu Community Law Centre in 2014 and he has been a Trustee of Te Manawa Museums Trust Board since 2005 and at present is the Chairperson of this organisation. John is a member of the MASH Finance, Audit and Risk Management (FARM) Committee and the Property Sub- Committee.

6 Sheena Mason - BBS, FCA Appointed 2009 Sheena is an Associate with BDO Central (NI) and was the firms Audit Manager from 1986 until 2014. Since moving from the audit sector Board of Trustees Sheena has become more involved in the farming, construction, manufacturing and retailing industries. She has been a member of the Chartered Accountants of Australia and New Zealand (formally the New - profiles Zealand Institute of Chartered Accountants) since 1986 and was the (continued) Manawatu Branch Secretary from 1999 to 2012. Sheena’s other roles include being the Chairperson of the Finance Committee of the Cathedral of the Holy Spirit. Sheena is the Chairperson of the MASH Finance, Audit and Risk Management (FARM) Committee and a member of the Property Sub-Committee and CEO Assessment Committee. She is also the MASH representative on the Whaioro Board and Chairperson of the Whaioro Trust Board FARM Committee.

Julie Nitschke - RN MA (applied) Appointed 2007 Julie has considerable experience in the New Zealand health care sector in clinical leadership and governance across a variety of settings including District Health Boards, primary health care and mental health. She has held various leadership roles including; leading and facilitating clinical strategic decision making, systems improvements and co-design, and quality and risk management, consumer focused services. Julie chairs the MASH Quality Governance Committee and is a member of the CEO Assessment Committee.

Peter Rea - Dip Bus Studies Appointed 2003 Peter is an Authorised Financial Advisor and a Certified Financial Planner with over 25 years’ experience in this field as well as more than 22 years in the banking industry. He is a Director of Personal Investment Centre Ltd. His roles include being a member the MASH Finance, Audit and Risk Management (FARM) Committee and the Chairperson of the MASH Property Sub-Committee.

Margaret Walsh Appointed 2003 Margaret has a vast background in social work and counselling, including Maori health. Margaret is a member of the MASH Quality Governance Committee and is also a member of the Whaioro Trust Board.

Bill Tither - CA (Ret) BBS - Obituary MASH Trust Board 2004 - 2015 Bill Tither sadly passed away in March 2015 after serving many years as a MASH Trust Board member. Bill had widespread experience in accounting, financial management and human resource management in the public and private sectors. His roles included being a member (and Chairperson) of the MASH Finance, Audit and Risk Management (FARM) Committee and a member of the Property Sub-Committee. Bill also served on the Whaioro Trust Board and was a member of their Finance and Risk Management (FARM) Committee.

Bill always had a smile and a story and he will be greatly missed by all at MASH and especially by the Board members who worked closely with

him.

Kua hinga te totara I to wao nui a Tana. (The Totara has fallen in the forest of Tane).

7 I t is now more than 25 years since MASH was first established with a convenor, three part time staff, five people living long-term in the community and a few Board members.

Board meetings were held in my living room and we all participated in the decision making. It was an exciting time for a dedicated group who Patron’s Message believed in a revolutionary approach to living with a long-term disability.

The traces of those small, and at first tentative, beginnings can still be identified in the present day philosophy and values of MASH. The small family approach has grown into the MASH Team concept and decision making has necessarily been delegated to appropriate groups. The end result has been the recognition of our level of achievement by a Bronze award from the NZ Business Excellence Foundation, this is a great step forward. The next, of course, will be a Gold Award! This is no pipe dream, I firmly believe that the organisation is more than capable of doing this. A big challenge but hey, that’s something we are accustomed to achieving.

A study of the monthly MASH memos for the past year leaves me somewhat breathless – so much activity. One account that I found most appealing was the article on the MASH Monarch Programme. Although I am no artist, I especially like the idea of using art to depict journeys through life. I hope the exhibition featured at the Community Arts Centre at Square Edge in Palmerston North was a success.

I must also pay tribute to long time Board Member Bill Tither who gave so much to MASH over his ten year membership – thank you Bill, you will long be remembered for your contribution and your courage.

Lastly, yes a barbecue is planned at Nan’s place for December 2015 - see you there.

Nancy J. Kinross CBE Patron MASH Trust

Annual Innovation Award presented at the MASH AGM to Brooklyn House, Mental Health Wellington.

8 I t is with pride I present my annual report on behalf of the MASH Trust Board. In doing so I must first mention a significant highlight from this year.

I am pleased to report we were successful with our application to the Business Excellence Foundation of New Zealand for a Business Excellence Chairperson’s Award as we were granted a Bronze Award. At the Award Ceremony members of the Foundation commented that as an organisation MASH Report demonstrated a high level of quality in its service. Also they stated that we clearly validate what we do and how we do it. The Board is delighted with this national recognition. This particular award recognises the enormous contribution made by our staff, all of whom continually ensure there is a high quality of service delivered to the people we serve. We applaud the dedication and support given by staff.

MASH continues to prove it is an organisation that is both innovative and dynamic. This year we have seen a rapid growth in services. The opening of Day Services in the Hutt Valley, the merging of the Dawn Trust residences into the MASH way, plus the recent purchase of Ribbonwood, a residential facility in Porirua. These additional services have made a huge demand on staff. The Board is most appreciative that all staff have risen to the challenges without compromising standards. They have ensured that the people for whom we provide services have great lives.

Sound governance practice by the Board provides a strong foundation for MASH and I should like to acknowledge my fellow Trustees for their wisdom and support. Their collective expertise continues to provide the organisation with effective governance. This term the Board welcomed John Fowke as a Trustee. John brings accounting, legal and business acumen to the table, adding to the skill base of the Board.

After twelve years of service Margaret Walsh has chosen to retire as a Heather Allan QSM JP Trustee. Margaret is a respected Kuia within Raukawa. During her time on Chairperson MASH Trust the Board she has kept a watching brief by ensuring cultural matters are addressed. Her wisdom and guidance over the years has been most appreciated. Fortunately for us Margaret will retain her position as a Trustee on the Whaioro Trust Board representing MASH.

In closing I would like to acknowledge the sad passing of Bill Tither. Bill was a long serving Trustee of MASH. During his tenure on the Board he proffered wise financial guidance. He was noted for his sound business practice. His financial objective was to achieve a 3% return on investment. This challenge will be adopted by the Board and fondly remembered as the ‘Tither Factor’.

From the Chair I look forward to another challenging year. I wish to thank the Chief Executive Officer, Carol Searle and the amazing MASH Team for all that they do as we ‘Work Together to Achieve Great Lives’ for all those involved with MASH.

Gift to all staff for achieving a NZBEF Bronze Award in Excellence. 9 T he 2014/15 period has been another huge year for MASH. We have seen significant growth in the numbers of people we support, the number of staff and skills and expertise they have and the geographical area in which we operate. This last year has seen MASH continue to work Chief Executive’s through the transfer of the services previously provided under the Dawn Trust to MASH, purchase of properties in Porirua and bringing the people supported by PORCH into MASH as well. Report We have grown the number of properties we own which reduces our reliance on government owned properties, which is an advantage but also means that we must have robust repairs and maintenance processes in place to protect the value of the assets and ensure the people we support continue to have a quality service provided.

As we grow, I am mindful of the challenge posed by our Board and Patron. No matter how big we get, we must ensure that the people we support are at the centre of everything we do. The staff who work for MASH, without exception, continue to focus on giving people the best possible lives that we can provide. Their hard work and dedication was acknowledged with MASH achieving a Bronze level in the New Zealand Business Excellence Awards where the reviewers particularly commented on the dedication and passion of the staff in the services they evaluated.

As we grow, it has been necessary to grow some of our infrastructure to reduce the time spent on reporting and handling paperwork by using technology to the best advantage. We are also looking at the back office functions and centralising some functions for efficiency and support of our front line staff. We have begun the introduction of Champions for Health and Safety and Champions for Quality so that we have regional representation to ensure that, no matter where you work at MASH, your voice can be heard and that each individual has the opportunity to make a real difference.

Carol Searle I continue to be amazed at the work that the MASH Team does and am Chief Executive Officer very proud to lead such a wonderful group of people and report to a MASH Trust Board who constantly challenge us to be the best that we can be.

Thank you for a great year and I look forward to another year of MASH magic.

Jo Hockley and Charlene Woodhead receiving a Blissful Acts of Kindness Award.

Vicki with her weekly scones for the office.

10 A year of highlights for Quality. The application for the Business Excellence Awards resulted in a Bronze Award. This was an outstanding organisational achievement. There were five evaluators at MASH Trust for three days and 39 meetings were held over this time with numerous site visits to homes. The opportunities for improvements from the evaluation will be worked through over the next three years. Quality Report Working with Housing NZ (HNZ), a number of MASH Trust home upgrades have been successful this year. New carpets, curtains and paint have been the order of the day. There have also been a number of HNZ properties that have had their exterior painted.

There were two Technical Advisory Services (TAS) Audits throughout the year auditing our District Health Board contracts. Both audits went well and the opportunity for improvement to test our Business Continuity Plan has been completed. This was a huge undertaking involving Emergency Managers from all geographical areas. Our mid-point Surveillance Audit is now due and we look forward to the opportunities that this will bring. A Standards and Monitoring (SAMS) Audit will also be undertaken at the same time.

During the year Ribbonwood became part of MASH and person centred service delivery education has been key for Quality support. Ribbonwood has also been added to our Certification list. Four bathrooms will be totally renovated at Ribbonwood this year which is very exciting and will be more functional for the people we support.

The 2015 Organisational Assessment will take place in August so that our opportunities for improvement are always current for all service streams.

Flu vaccinations for the preparation of winter increased this year. Both Palmerston North and Levin held successful sessions for staff at the offices. Next year it will be extended to Lower Hutt/Wellington. The grounds of Ribbonwood and Wellington homes have been improved by having one Judy Pedersen contractor complete a one-off tidy up and this will set the scene for Quality and Infection continuous improvement and grounds maintenance. Prevention and Control

Coordinator This year we will be appointing six Quality Champions, one for each geographical area. This will help ensure that Quality is always the focus of everything we do.

New Levin Office premises. NZ Business Excellence Award Evaluation Team at MASH.

11 T he highlight of the last 12 months was the achievement of MASH receiving the NZ Business Excellence Foundation Bronze Award for Excellence. This award was the culmination of many months of work by many people at MASH. The process of spending sometimes days Business Excellence answering a single question as you reach an understanding or coming to the realisation that the answer may show a weakness or gap in where we should be, is certainly sobering. This is what any type of assessment & Projects Report should be all about and the NZBEF Baldrige Criteria certainly asks the hard questions and challenges the applicant to dig deep and analyse without mercy. With this critical scrutiny we are assured that the results from the evaluation are relevant and robust and will provide us with opportunities for improvements to keep us busy for quite a while. Our aim is to achieve the Gold Award in 2018 - it may seem a long time away but the necessary improvements at MASH, to achieve the Gold world class status, will need to be managed so that they are deployed and integrated and will be successful not only now, but into the future.

With the organisation moving into a phase of managed assessment, external evaluation, outcome measures and continuous quality improvement, came the realisation that project work needed to be organised and managed so that undue stress was not put on organisational resources and projects were prioritised to ensure that key work was completed as a priority. The latter part of this year has been spent setting up processes to manage the portfolio of projects that will support our continuous quality philosophy.

One large piece of work that was completed this year was the development of an ICT Strategic Plan. Many months of work was spent by the ICT team developing a mission and plan for the future to ensure that MASH’s ICT infrastructure is safe, reliable and user friendly. Already there are projects underway to realise some of the key components of the ICT plan.

The year ahead will be exciting with many progressive projects that will ensure that MASH continues to improve and thrive for many years to Lynne Phillips come. Business Excellence and Projects Manager

Easter gifts from the Starlight Trust. 12 T he last 12 months has seen another year of continued growth in services and staff numbers. This continued growth has meant that some of our support systems needed a major review and significant investment Human Resources to provide an effective support structure.

The Rostering and Administration support teams have done a fantastic job and Learning & coping with the ever increasing demands placed on them by the growth in services but in 2014 they had reached capacity. A series of projects was Development Report launched at the beginning of 2014, these are some of the most significant infrastructure projects we have undertaken. This has required us to take a fresh look at the tools and resources we need to support a growing business into the future.

During 2015/16 we will be focusing on opportunities for improvement in our Learning and Development systems to improve the delivery of skills and knowledge to staff on a ‘when and where they are needed’ basis.

As our workforce continues to grow to meet the changing needs of the people we support, we are working hard to meet those challenges and deliver quality services.

Staff by Service Peter Bell Year End June 2015 Deputy CEO/ General Manager 13% Human Resources MH&A 6% 28% ID/PD Support Services Vocational

53%

Staff areacknowledged for 10 years of service at the Annual General Meeting.

13 Staff by Region Year End June 2015

Human Resources 7% Hawkes Bay and Learning & 23% 9% Kapiti Development Report - Levin (continued...) 25% PN Wellington 36%

Gender Ratio Year End June 2015

26% Male Female

74%

Employee Status Year End June 2015

Christmas gift preparations. 13% Casual Part time Full time 30% 57%

Employee Status 300 250 200 150 100 50 0 Casual Part time Full time MASH PN support staff promoting the Great KidsCan Santa Run. 2011 2012 2013 2014 2015

14 Human Resources and Learning & Length of Service Development Report - Year End June 2015 3% (continued...)

24% < 1yr service 21% 1-5 yrs service

6-10 yrs service

> 10 yrs service

52%

Length of Service 300 250 200 150 100 2015 Relay For Life. 50 0 < 1yr service 1-5 yrs service 6-10 yrs service > 10 yrs service 2011 2012 2013 2014 2015

Staff Qualifications 40% 35% 30% Lisa, Haylee and Jo preparing the food for 25% Nan’s BBQ. 20% 15% 10% 5% 0% Qualifications 2012 2013 2014 2015

Wendy Signal achieves her National Certificate in Health, Disability and Aged Support (Core Competencies) Level 3. 15 I am ever impressed with the ability of the MASH team, to not only adapt to change, but to embrace both change and the opportunities change present. This year has involved settling the operations of Dawn Trust which merged Operational Service with MASH at the end of 2013/14, into MASH. We were approached by PORCH Ltd in Porirua with an opportunity to purchase their property and Reports business, negotiations were successfully completed with MASH taking over from April.

- overview In both these instances we were pleased to be able to offer almost all staff positions with MASH, allowing us to work together to minimise the impact on the people we support. We welcome these staff and acknowledge the challenges they have faced and most importantly thank them for their commitment to the people they support.

Geoff Sewell, Manager Vocational Services resigned after nine years with MASH but not before establishing a new day base in Lower Hutt. This was a well-researched and implemented project, which Geoff successfully led from inception through to operating at almost full capacity.

An organisation wide approach was taken to strategic planning, starting with a survey of staff to understand their views on what services will look like into the future and what would improve service delivery both now and into the future. This information was accumulated and considered as part of the overall strategic plan and business plan development process.

Finally I would like to acknowledge the service managers, it is my privilege to lead a team of managers who are as competent as they are passionate. They are a diverse group, each bringing different personality, approach and views to the discussion, but with respect and the common objective of achieving the best outcome. I look forward with enthusiasm and anticipation to another interesting year which I have no doubt will include more change and growth, Sharon Saxton both planned and unplanned. General Manager Operations

A day out at the Waiouru Army Museum.

The new Lower Hutt Living Plus Service. Geoff Sewell and Teresa at the opening of the new Living Plus Lower Hutt service.

16 I firstly want to acknowledge Geoff Sewell and his huge contribution to and leadership of the Living Plus and Vocational services and also across Operational Service MASH Trust as a whole. Geoff has been instrumental in helping guide and grow services with a constant focus on quality and person centred (continued…) services. Reports Geoff acknowledged during his retirement speech that one of his proudest achievements was the development of a new day service in Lower Hutt for people with profound and severe disabilities. This service - Vocational opened in August 2014 after 18 months of consultation and planning. The service has been very well received and is likely to reach full capacity in January 2016.

The Vocational service expanded to Porirua with the purchase of PORCH Ltd (Ribbonwood) in April. Initial focus has been on person-centered planning and to embed identified goals into daily routines with support from residential staff. Already some good gains have been made around paid employment opportunities, community participation access and the set-up of social programmes on site.

We were pleased to participate in the ‘Navigating Futures Transition Expo’ which is aimed at allowing young people with disabilities and their families to explore post-school options. It is important that people know what is available and what organisations are there to provide support, our stall was well attended with good levels of interest from people at the event.

Friendship services continue to provide excellent support to a number of individuals and volunteers. Numbers of people wishing to volunteer have also increased and additional funding has been found to provide three additional community workshops in 2016. The Friendship service was also present at the ‘Navigating Futures Transition Expo’. Brennan Gracie Manager Vocational Services (from June 2015)

Susan & Mark from Living Plus Levin at the Levin Wearable Arts Show.

Geoff Sewell Manager Vocational Services (to June 2015)

Halloween at Living Plus Palmerston North. 17 O ur service continues to provide a variety of support to many Operational Service service users in the community. Currently we have 33 homes geographically spread across the lower North Island from Reports (continued…) Hastings to Wellington. We have over 250 staff members and over 110 people that we support. This is far different from the two homes and 20 staff ten years ago.

- Intellectual & As we have grown, so have our needs and we have shifted into our new office at 83 Oxford Street, Levin which has been a Physical Disability breath of fresh air. This is our fifth office change in 10 years. The new office is bright, welcoming and user friendly. If you are travelling through Levin please call in and see us and make yourself known.

Some of the changes that have been implemented already are the addition of a Residential Manager. Eru Paul has joined the team to work alongside Andrew McGregor. We have, in some regions, implemented Clinical Coordinators to provide dedicated focus on the clinical needs of the people we support while Team Leaders assist with all other daily aspects of the service.

Staffing has remained fairly stable throughout most regions enabling us to provide consistent support to all our people. Wellington has continued to be our most difficult challenge with regard to staffing, due to higher costs of living and a transient workforce. We are fortunate in having a dedicated pool of staff who work together to achieve the outcomes for a safe and consistent workforce.

It is great to see so many of our staff gaining qualifications Fiona Parrant through NZQA and extramurally - it goes to show the true level of Manager Intellectual and commitment and passion that our staff have so that our people Physical Disability Services can continue to have great lives.

We are also very excited to have entered into the 2015 Electra Kapiti Horowhenua Business Awards which will take place in October and, if selected to be a finalist, it will be an awesome opportunity to showcase what a fantastic organisation MASH Trust is and what we do in the Community, so watch this space.

David Berry receives a MASH staff Tom out for a days sailing with ‘Sailability’. Excellence Award in the Relationships Category.

18 Some of the many highlights for our people last year included trips to Operational Service Australia, fishing trips to the South Island, music concerts, Taupo Cycle Challenge, Waikanae Great Forest Marathon, Colour Plus runs, (continued…) rugby matches, sailing, Special Olympics and many more. Many Reports people celebrated milestones particularly 60th, 65th, 70th and 75th birthdays, so many happy returns to you all.

As a number of the people we support are aging we are looking at - Intellectual & what this means for the services we provide and the way we provide them. We are focussing on future service provision for both the Physical Disability people we currently support and new people looking to enter into our (continued…) services.

Bluegum residents enjoying the Christmas lights.

Ginny (centre) celebrating her wins at Special Olympics with flatmates Adrienne (left) and Lynn (right).

Witako Street celebrate St Patricks Day.

The Gables residents enjoying a trip to Wellington Zoo.

Team Kingfisher complete the Wellington Round the Bays event. 19 Te Matai Child and Operational Service Youth Respite Service Reports (continued…) T his service supports rangatahi and whanau as part of the wider care continuum. Referrals are received from clinical teams and are also accepted from identified community agencies. The intention is to provide holistic and proactive support to whanau and the - Mental Health community to contribute to improved mauri ora (wellbeing) for all members. & Addictions The use of both crisis and planned respite allows the team to support young people to set short term goals in a safe place where they are able to focus on self and recovery. The essence of ahurutanga (a safe space) is evident within the home.

With increasing pressure on hospital based services and limited inpatient options for youth, Te Matai have partnered on many occasions with MidCentral Health teams to support young people with complex and challenging needs. This has allowed close input from clinical teams and whanau and enabled the rangatahi to remain within their community close to their natural supports. This flexible and collaborative approach has led to positive outcomes for whanau.

The ability to provide regular and ongoing planned respite to rangatahi over a number of years has supported people to successfully navigate their journey through adolescence with improved health and social outcomes. Key statistics for the year – 97% of referrals came to stay at Te Matai (did not attend rates are very low), 62% of referrals were male, 18% of referrals were maori, Rodger McLeod occupancy for the year was 54%. Manager Mental Health and Addictions Services

Demi’s entry to the MASH Arts & Crafts competition. Artwork by Alex Simpson, Palmerston North.

20 Operational Service Palmerston North AOD Recovery Service U tilisation of the residential recovery program has been good at 69% Reports (continued…) occupancy, 39% were maori. The home had an upgrade from Housing NZ this year and is well received by people accessing the service. Bicycles that people use for fitness and transport have been provided.

- Mental Health A ‘working with youth’ workshop was developed and delivered in the region. The team identify that increased youth work in the district would & Addictions benefit our community significantly. This is an aspirational piece of service (continued…) delivery the team would like to see developed more.

A research project has been agreed between MASH and Massey University which will review the Monarch program content, delivery and outcomes. The team are looking forward to this work that will begin late 2015.

The Toitu te Ora service delivered in partnership with three other NGOs and Community Probation is managing large referral rates, which have Monarch Programme Referral Ethnicities - PN exceeded contract expectations. The team continue to be proactive and Year End June 2015 effective in group delivery, allowing the team to manage high referral numbers. At any one time there is between 110 and 130 people being managed on team caseloads.

38% Maori Pacific Island Hawkes Bay AOD Recovery Service Other 60% U tilisation of the residential recovery program has been good at 89% occupancy, 35% were maori. In August 2014 we moved from Havelock to 2% Central Hastings. The residential and community program are now both delivered from one site. The home is sunny with great gardens. On Thursday afternoons past people we supported are coming in to support a recovery gardening program.

Monarch Programme Referral Ethnicities - HB Program consolidation is managed in partnership with the Palmerston Year End June 2015 North team and an annual review cycle is established.

34% Maori Pacific Island Other 65% 1%

New MASH AOD premises in Hawkes Bay - Akron House.

AOD Art masks.

21 Operational Service Palmerston North Residential Recovery T his service supports 34 people to live well in the community with 24 Reports (continued…) hour a day support, in addition two beds are available for planned respite. Flexible configuration options allow us to maintain good occupancy across five properties. Having a combination of some larger homes together with a block of smaller flats allows us to support graduated independence. - Mental Health The Arts and Craft competition went well and people are looking forward & Addictions to this taking place every two years. (continued…) Two properties were refurbished by Housing NZ which was appreciated and well received by people we support. This did involve relocation to allow the work to be done and the team supported people well during this time. It is always hard to be out of your home environment.

Key statistics for the year – 98% residential occupancy, 28% maori. 57% respite occupancy, 19% maori. Over the period 10 people were discharged to alternative living options - 29.5% turnover of access to the 34 beds.

Wellington Residential Recovery

T his service supports 50 people at a time to live well in the community with 24 hour a day support. The service grew from 30 beds due to the purchase of PORCH Ltd in Porirua (Ribbonwood). Ribbonwood supports 11 people with an experience of mental illness and nine people with an intellectual disability and also provides Vocational services. Transition to Shirley Morgans quilt that hangs MASH took place in April with an ongoing focus on person-centered proudly in the PN Office Reception. planning and increasing independence.

Monthly forums continue to be well structured and are run at the Miramar Chapel. Brooklyn enjoyed a great holiday in Taupo. Community engagement is the strength of this service and the many and varied activities available in Wellington are enjoyed by many of the people we support. A group organised a fishing charter day which was very successful and enjoyed by all who took part.

Key statistics for the year excluding Ribbonwood – 95% residential occupancy, 23% maori, 6% pacific island. Over the period three people were discharged to alternative living options - 10% turnover of access to the 30 beds.

Joyce McCutcheons ‘Red Dress’ - winner of the Mental Health Art & Craft competition.

Robert from Wellington supports Buxton Bandits & Buxton Burners - PN Winter the house kai with freshly 22 Walkathon teams. harvested mussels. T he past year has been another busy and exciting 12 months as we Operational Service as a team have continued to develop our service to meet the needs of people, whanau and community. There is a team commitment to ‘think Reports (continued…) outside the box’ - exploring with people and whanau the possibilities that can enhance mauri ora (wellbeing).

We have established partnerships with internal MASH service streams to develop an integrated approach that supports a range of complex - Community needs. A solution focused partnership with the DHB has supported the transition of people from an acute hospital setting to their community. Services LUCK received a commendation in the Health and Wellbeing section of Trust Power Awards. Huge thanks goes out to Morgan Laurenson, Hester Guy, PN Inner Wheel and Starlight Trust for their continued support, without it we would not be able to do what we do.

Matariki celebrations grow in strength each year, this year people were the drivers of what we did, connecting with the planning and implementation of events and this reminded people of their skills and abilities – it was a truly mana enhancing week.

Mental Health Awareness week was celebrated with our annual Esplanade Fun Day. Over 300 people joined in a fun-filled day that promoted Mental Health, inclusion, communities connecting, whanau ora and participation.

Christmas can be a difficult time for a number of people and whanau. This year we came together to support whanau to ‘get ready’ for their Christmas celebrations. A focus was supporting people to access what they needed, people made Christmas Cakes, wrapped their whanau presents and the smiles said it all. Over 40 meals and gifts were delivered on Christmas Day and a Christmas lunch was hosted at a community hall, providing a place for people to come together and Christina Hemmingsen celebrate. A huge thanks goes out to Starlight Trust for their generous Manager Community donation of Christmas gifts. Services

Trip to Mt Ruapehu - snowman building competition.

Community Support walking group enjoying the outdoors.

Cardrona gardeners.

23 Nan’s annual Christmas BBQ was rained out this year, a first in 25 years. The MASH team showed their ability to think on their feet as this event Operational Service for over 250 people was moved to Newbury Hall. This event is a special time when we come together as an organisation, celebrate who we are Reports (continued…) and have a truck load of fun.

LUCK is facing a changing funding environment that has put a question mark around our major funding stream. We have taken a step back to - Community review our purpose, evaluate what we provide and the impact this service has on this community. With the backing of MASH and Whaioro Services Trust, LUCK has made the decision to diversify and develop our ‘whatever it takes’ approach to providing what is seen as an essential (continued…) community service that meets the ever changing complexity of needs for people, whanau and community.

For LUCK the year ahead will be a time of change, we look forward with an exciting vision to continue to connect with the wider community, expanding on opportunities and possibilities for people, whanau and community.

LUCK Catering service.

Relaxation classes.

LUCK receiving Christmas gifts from PN Inner Wheel LUCK kitchen staff and volunteers. Club.

24 M ASH Trust has had another outstanding year. We have strengthened our balance sheet through a number of initiatives, and through the continued growth of the organisation.

The year started well for us with the acquisition of Dawn Trust in Corporate Services Lower Hutt, and continued with the expansion of Ribbonwood Terrace, adding another 20 beds to our Mental Health and Report Intellectual Disability services.

This expansion has improved our bottom line with excellent results this year. The funding environment continues to be constrained however this has been mitigated this year by low cost increases. This has allowed us to continue to invest in our staff and in the people we continue to support.

Chris Atherton General Manager Corporate Services

Operating Revenue Surplus 21

16

11

Millions 6

1

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total Operating Revenue Operating Expenses Net Surplus/ (Deficit) -4

Operating Revenue Operating Revenue Year End June 2015 16 14 4% 1% 2% 12 DHB Contracts 10 8 29% MOH Contracts

Millions 6 Contracts Other 4 2 Income Support 0 Other DHB MOH Contracts Income Other 64% Contracts Contracts Other Support 2011 2012 2013 2014 2015

25 Financial Statements for the year ending 30 June 2015

STATEMENT OF COMPREHENSIVE REVENUE & EXPENSE for the year ending 30 June 2015 2015 2014 Notes $ $ Revenue from exchange transactions DHB Contracts 6,902,505 6,450,644 MoH Contracts 15,308,571 12,346,142 Government Contracts 22,211,076 18,796,786

Contracts Other 474,382 278,606 Sales 96,769 142,678 Income Support 886,929 852,336 Interest received 65,981 36,868 Other revenue 628,544 673,023 Profit/(Loss) on disposal of property, plant and equipment 12,965 10,000 Donations - 16,700 Total revenue from exchange transactions 24,376,646 20,806,997 Revenue from non-exchange transactions Donations 1,059 1,376 Total operating revenue 24,377,705 20,808,373

Expenses Finance costs 49,621 15,844 Operating expenses 1 23,759,679 20,006,523 Total Operating Expenses 23,809,300 20,022,367 Surplus for the year from continuing operations 568,406 786,006

Deficit for the year from discontinued operations 20 (4,536) (58,877) Net surplus for the year 563,870 727,129

Other comprehensive revenue and expense Surplus on transfer of business 16 583,768 - Total comprehensive revenue and expense for the year 1,147,638 727,129

STATEMENT OF CHANGES IN NET ASSETS/EQUITY for the year ending 30 June 2015

Contingency Retained Reserve Earnings Total Equity $ $ $

Balance at 1 July 2013 110,000 1,693,496 1,803,496

Changes in equity for 2014 Total comprehensive income for the year - 727,129 727,129 Balance at 30 June 2014 110,000 2,420,625 2,530,625 Changes in equity for 2015 Total Comprehensive Income for the Year - 1,147,638 1,147,638 Balance at 30 June 2015 110,000 3,568,263 3,678,263

These financial statements should be read in conjunction with the notes to the financial statements and the audit report.

26 Financial Statements for the year ending 30 June 2015

STATEMENT OF FINANCIAL POSITION as at 30 June 2015 2015 2014 Notes $ $ Equity Contingency Reserve 2 110,000 110,000 Accumulated revenue and expense 3,568,263 2,420,625 Total Equity 3,678,263 2,530,625

Represented by:

Current assets Cash and cash equivalents 3 3,075,740 2,154,909 Receivables from exchange transactions 4 2,337,234 2,136,511 Total current assets 5,412,974 4,291,420

Current liabilities Payables from exchange transactions 5 1,113,173 1,130,115 Loans and borrowings 11 461,850 25,089 Employee entitlements 12 2,180,954 1,704,835 Total current liabilities 3,755,977 2,860,039

Working capital 1,656,997 1,431,381

Non-current assets Property, plant and equipment 6 3,634,347 1,109,151 Intangibles and goodwill 7 594,305 321,424 Total non-current assets 4,228,652 1,430,575

Non-current liabilities Loans and borrowings 11 2,107,496 242,645 Employee entitlements 12 99,890 88,686 Total non-current liabilities 2,207,386 331,331 Net assets 3,678,263 2,530,625

The Board of Trustees of MASH Trust authorised these financial statements for issue on 28th August 2015.

Heather Allan Sheena Mason Chairperson MASH Trust Chairperson MASH Trust Finance and Risk Management Committee

These financial statements should be read in conjunction with the notes to the financial statements and the audit report.

27 Financial Statements for the year ending 30 June 2015

STATEMENT OF CASH FLOWS for the year ending 30 June 2015 2015 2014 Notes $ $ Cash flows from Operating Activities Proceeds from: Goods and services provided 24,328,436 20,727,102 Grants, donations and bequests 274,884 - Payments to suppliers and employees (23,247,804) (19,596,465) Net cash inflow from operating activities 1,355,516 1,130,637

Cash flows from discontinued operations (3,682) (52,470) Interest paid (49,621) (15,844) Interest received - - Net cash flows from operating activities 14 1,302,213 1,062,323

Cash flows from investing activities Proceeds from sales of property, plant and equipment 26,333 13,329 Purchase of property, plant and equipment (1,965,676) (280,498) Purchase Ribbonwood (299,653) - Purchase of intangible assets (20,435) (51,400) Net cash flows from investing activities (2,259,431) (267,169)

Cash flows from financing activities Repayments of amounts borrowed (77,952) (4,509) Cash proceeds from borrowings 1,956,000 - Net cash flows from financial activities 1,878,048 (4,509)

Net increase/(decrease) in cash held 920,830 790,645

Cash and cash equivalents at beginning of year 2,154,910 1,364,265

Cash and cash equivalents at end of year 3 3,075,740 2,154,910

These financial statements should be read in conjunction with the notes to the financial statements and the audit report.

28 Financial Statements for the year ending 30 June 2015

STATEMENT OF ACCOUNTING POLICIES for the year ending 30 June 2015

Reporting Entity The reporting entity is MASH Trust (the Trust). The Trust is domiciled in New Zealand and is a charitable organisation registered under the Charities Act 2005.

These financial statements have been approved and authorised for issue by the Board of Trustees on 28 August 2015.

Basis of Preparation (a) Statement of compliance The financial statements have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand (NZ GAAP). They comply with Public Benefit Entity International Public Sector Accounting Standards (PBE IPSAS) and other applicable Financial Reporting Standards as appropriate that have been authorised for use by the External Reporting Board for Not-For-Profit entities. For the purposes of complying with NZ GAAP, the Trust is a public benefit not-for-profit entity and is eligible to apply Tier 2 Not-For-Profit PBE IPSAS on the basis that it is not defined as large.

The Board of Trustees has elected to report in accordance with Tier 2 Not-For-Profit PBE Accounting Standards and in doing so has taken advantage of all applicable Reduced Disclosure Regime (RDR) disclosure concessions. This decision results in the Trust not preparing a Statement of Service Performance for both reporting periods.

(b) Measurement basis The financial statements have been prepared on a historical cost basis. The accrual basis of accounting has been used unless otherwise stated and the financial statements have been prepared on a going concern basis.

(c) Functional and presentation currency The financial statements are presented in New Zealand dollars which is the Trusts functional and presentation currency and has been rounded to the nearest dollar.

Use of estimates and judgements The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. The uncertainty from these assumptions and estimates could result in outcomes that may result in a material adjustment to the carrying amount of the asset or liability.

The Trust bases its assumptions and estimates on parameters available when the financial statements are prepared. However, existing circumstances and assumptions about future developments may change due to market changes or circumstances arising beyond the control of the Trust.

(a) Judgements Judgements made in applying accounting policies that have had the most significant effects on the amounts recognised in the financial statements include the following:  Classification of lease arrangements  Intangible assets having indefinite useful lives

(b) Assumptions and estimation uncertainties Assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment in the year ending 30 June 2015 include the following:  Key assumptions underlying determining the recoverable amounts for impairment testing  Useful life, recoverable amount, depreciation/amortisation method and rate  Determination of fair values

(c) Changes in accounting estimates There have been no material changes in accounting estimates.

29 Financial Statements for the year ending 30 June 2015

STATEMENT OF ACCOUNTING POLICIES (continued…) for the year ending 30 June 2015

Significant accounting policies The following significant accounting policies which materially affect the measurement of comprehensive revenue and expense and the financial position have been applied consistently to all periods presented in these financial statements.

Revenue Revenue is recognised when the amount of revenue can be measured reliably and it is probable that economic benefits will flow to the Trust, and measured at the fair value of consideration received or receivable.

The following specific recognition criteria in relation to the Trusts revenue streams must also be met before revenue is recognised.

Revenue from exchange transactions

Contracts revenue Revenue comprises the amounts received and receivable under contracts from the Ministry of Health (MoH) and District Health Board (DHB) Funding Division, other contracts and for services provided to customers in the ordinary course of business. Some MoH contracts are paid net of income support received from Work and Income, income support for these contracts is included in MoH contract income.

Contract revenue is recognised as revenue in the period when the service is performed in accordance with relevant contract terms. Amounts received in advance for services to be provided in future periods are recognised as a liability until such time as the service is provided.

Grants Grants received are not recognised in the Statement of Financial Performance until the requirements of the Grant have been met. Any Grants for which the requirements under the Grant agreement have not been completed are carried as liabilities until all the conditions have been fulfilled.

Interest Income Interest income is accounted for as it is earned.

Revenue from non-exchange transactions Non-exchange transactions are those where the Trust receives an inflow of resources, such as cash and other tangible or intangible items but provides no (or minimal) direct consideration in return.

Inflows of resources from non-exchange transactions are only recognised as assets where both:  It is probable that the associated future economic benefit or service potential will flow to the entity, and  Fair value is reliably measurable.

Inflows of resources from non-exchange transactions that are recognised as assets are recognised as non-exchange revenue, to the extent that a liability is not recognised in respect of the same inflow.

Liabilities are recognised in relation to inflows of resources from non-exchange transactions when there is a resulting present obligation as a result of the non-exchange transactions, where both:  It is probable that an outflow of resources embodying future economic benefit or service potential will be required to settle the obligation, and  The amount of the obligation can be reliably estimated.

31 Financial Statements for the year ending 30 June 2015

STATEMENT OF ACCOUNTING POLICIES (continued…) for the year ending 30 June 2015

Financial Instruments Financial assets and financial liabilities are recognised when the Trust becomes party to the contractual provisions of the financial instrument.

The Trust derecognises a financial asset or, where applicable, a part of a financial asset or part of a group of similar financial assets when the rights to receive cash flows from the asset have expired or waived, or the Trust has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party; and either:  The Trust has transferred substantially all the risks and rewards of the asset; or  The Trust has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Financial assets Financial assets within the scope of NFP PBE IPSAS 29 Financial Instruments: Recognition and Measurement are classified as financial assets at fair value through surplus or deficit, loans and receivables, held-to-maturity investments or available-for-sale financial assets. The classifications of the financial assets are determined at initial recognition.

The category determines subsequent measurement and whether any resulting revenue and expense is recognised in surplus or deficit or in other comprehensive revenue and expenses. The Trust’s financial assets are classified as financial assets at fair value through surplus or deficit, loans and receivables or as available for sale financial assets. The Trust’s financial assets include: Cash and cash equivalents, short-term deposits, receivables from non-exchange transactions, receivables from exchange transactions and investments.

All financial assets except for those at fair value through surplus or deficit are subject to review for impairment at least at each reporting date. Financial assets are impaired when there is any objective evidence that a financial asset or group of financial assets is impaired. Different criteria to determine impairment are applied for each category of financial assets, which are described below.

Financial assets at fair value through surplus or deficit Financial assets at fair value through surplus or deficit include items that are either classified as held for trading or that meet certain conditions and are designated at fair value through surplus or deficit upon initial recognition. All derivative financial instruments fall into this category, except for those designated and effective as hedging instruments or a derivative that is a financial guarantee contract.

Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. After initial recognition, these are measured at amortised cost using the effective interest method, less any allowance for impairment. The Trust’s cash and cash equivalents, receivables from exchange transactions and receivables from non-exchange transactions fall into this category of financial instruments.

Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are either designated to this category or do not qualify for inclusion in any of the other categories of financial assets.

Impairment of financial assets The trust assesses at the end of the reporting date whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event has an impact on the estimated future cash flows of the financial asset or the group of financial assets that can be reliably estimated.

30 Financial Statements for the year ending 30 June 2015

STATEMENT OF ACCOUNTING POLICIES (continued…) for the year ending 30 June 2015

For financial assets carried at amortised cost, if there is objective evidence that an impairment loss on loans and receivables carried at amortised cost has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of the estimated future cash flows discounted at the financial assets original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account. The amount of the loss is recognised in the surplus or deficit for the reporting period.

In determining whether there are any objective evidence of impairment, the Trust first assesses whether there are any objective evidence of impairment for financial assets that are individually significant, and individually or collectively significant for financial assets that are not individually significant. If the Trust determines that there is no objective evidence of impairment for an individually assessed financial asset, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. Assets are individually assessed for impairment and for which an impairment loss is or continues to be recognised are not included in a collective assessment or impairment.

If in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed by adjusting the allowance account. If the reversal results in the carrying amount exceeding its amortised cost, the amount of the reversal is recognised in surplus or deficit.

Financial liabilities The Trust’s financial liabilities include trade and other creditors, employee entitlements and borrowings.

All financial liabilities are initially recognised at fair value (plus transaction cost for financial liabilities not at fair value through surplus or deficit) and are measured subsequently at amortised cost using the effective interest method except for financial liabilities at fair value through surplus or deficit.

Property, Plant and Equipment Items of property, plant and equipment are initially measured at cost, except those acquired through non exchange transactions which are instead measured at fair value as their deemed cost at initial recognition. Cost includes expenditure that is directly attributable to the acquisition of the asset.

Property, plant and equipment consists of the following asset classes:  Land  Buildings  Leasehold improvements  Office equipment  Computer equipment  Furniture & fittings  Lawnmowers  Plant & equipment  Motor vehicles

Land is measured at fair value and buildings are measured at fair value less accumulated depreciation and impairment losses.

All other asset classes are measured at cost, less accumulated depreciation and impairment losses.

All assets costing more than $500 are capitalised.

Additions The cost of an item of property, plant and equipment is recognised as an asset if, and only if, it is probable that future economic benefits or service potential associated with the item will flow to the Trust and the cost of the item can be measured reliably. In most instances, an item of property, plant and equipment is recognised at its cost. Where an asset is acquired at no cost, or for a nominal cost, it is recognised at fair value as at the date of acquisition.

31 Financial Statements for the year ending 30 June 2015

STATEMENT OF ACCOUNTING POLICIES (continued…) for the year ending 30 June 2015

Work in progress is recognised at cost, less impairment, and is not depreciated.

Disposals Gains and losses on disposals are determined by comparing the proceeds with the carrying amount of the asset. Gains and losses on disposals are reported in the surplus or deficit. When revalued assets are sold, the amounts included in revaluation reserves in respect of those assets are transferred to general funds.

Subsequent Costs Costs incurred subsequent to initial acquisition are capitalised only when it is probable that future economic benefits or service potential associated with the item will flow to the Trust and the cost of the item can be measured reliably. The costs of day-to- day servicing of property, plant and equipment are recognised in the surplus or deficit as they are incurred.

Client Owned Assets These represent items owned by clients at our Intellectual Disability houses. These items are able to be moved with the client should they relocate to a different house or provider. The items have been purchased with part of the Grant monies received from the Ministry of Health when setting up houses for clients who were exiting the Kimberly Centre. The items are listed on our asset ledger but not depreciated. There is a corresponding liability recorded in the Statement of Financial Position under Current Liabilities.

Depreciation Depreciation is provided on a straight-line basis on all property, plant and equipment, other than land, at rates that will write off the cost (or valuation) of the assets to their estimated residual values over their useful lives. The useful lives and associated depreciation rates of major classes of assets have been estimated as follows: Depreciation methods, useful lives and residual values are reviewed at reporting date and adjusted if appropriate.

Computer Equipment 6% to 100% 1 to 16 years

Furniture & Fittings 7% to 100% 1 to 16 years

Office Equipment 9.6% to 67% 1 to 10 years

Lawnmowers 28.8% to 100% 0 to 3 years

Plant & Equipment 6.5% to 80.4% 1 to 15 years

Motor Vehicles 7.8% to 31.9% 3 to 12 years

Leasehold Improvements 2% to 50% 2 to 50 years

Buildings 2% 50 years

Land is not depreciated

Revaluation Land and buildings are revalued with sufficient regularity to ensure that the carrying amount does not differ materially from fair value and at least every five years in the case of Land and Buildings. Fair value is determined from market-based evidence by an independent valuer. All other asset classes are carried at depreciated historical cost.

The carrying values of revalued items are reviewed at each balance date to ensure that those values are not materially different to fair value.

Accounting for Revaluations The Trust accounts for revaluations of property, plant and equipment on a class of asset basis. The net revaluation results are

32 Financial Statements for the year ending 30 June 2015

STATEMENT OF ACCOUNTING POLICIES (continued…) for the year ending 30 June 2015

credited or debited to other comprehensive income and are accumulated to an asset revaluation reserve in taxpayers’ funds (equity) for that class of asset. Where this would result in a debit balance in the asset revaluation reserve, this balance is not recognised in other comprehensive income but recognised in the surplus or deficit. Any subsequent increase on revaluation that reverses a previous decrease in value recognised in the surplus or deficit will be recognised first in the surplus or deficit up to the amount previously expensed, and then recognised in other comprehensive income.

Intangible Assets Intangible assets are initially measured at cost, except for intangible assets acquired through non-exchange transactions which are measured at fair value. All of the Trusts intangible assets are subsequently measured at cost (or fair value for non-exchange transactions) less accumulated amortisation and impairment, except for goodwill which is not amortised and instead tested for impairment.

Apart from goodwill, the Trust has no intangible assets with indefinite useful lives.

Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed intangible assets includes the following:  The cost of materials and labour,  Costs directly attributable to bringing the assets to a working condition for their intended use, and  Capitalised borrowing costs.

Software Acquisition and Development Costs that are directly associated with the development of software for internal use by the Trust are recognised as an intangible asset. Direct costs include the software development, employee costs and an appropriate portion of relevant overheads.

Expenditure incurred on research of internally generated software is expensed when it is incurred. Staff training costs are recognised as an expense when incurred.

Individual assets, or group of assets, are capitalised if their cost is greater than $500. The value of an individual asset that is less than $500 and is part of a group of similar assets is capitalised. Website costs are only recognised as an intangible asset if they will provide future service potential. Costs associated with maintaining computer software are recognised as an expense when incurred.

Goodwill Goodwill has an indefinite useful life and represents the excess of purchase price over carrying value paid on the purchase of two intellectual disability properties. Goodwill on acquisition of businesses is included in ‘intangible assets’ and is tested annually for impairment and subsequently carried at cost less accumulated impairment losses. An impairment loss recognised for goodwill is not reversed.

Goodwill is allocated to cash-generating units for the purposes of impairment testing. The allocation is made to those cash- generating units or groups of cash-generating units that are expected to benefit from the business combination in which the goodwill arose.

Amortisation The carrying value of an intangible asset with a finite life is amortised on a straight-line basis over its useful life. Amortisation begins when the asset is available for use and ceases at the date that the asset is derecognised. The amortisation charge for each period is recognised in surplus or deficit.

The useful lives and associated amortisation rates of major classes of intangible assets have been estimated as follows:

Computer Software 10% to 50% 2 to 10 years

33 Financial Statements for the year ending 30 June 2015

STATEMENT OF ACCOUNTING POLICIES (continued…) for the year ending 30 June 2015

Impairment of Non-Financial Assets other than goodwill and indefinite life intangibles Property, plant and equipment and intangible assets other than goodwill and indefinite life intangibles are reviewed for indicators of impairment at each reporting date. When there is an indicator of impairment the asset’s recoverable amount is estimated. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. Value in use is depreciated replacement cost for an asset where the service potential of the asset is not primarily dependent on the asset’s ability to generate net cash inflows and where the Trust would, if deprived of the asset, replace its remaining service potential.

If an asset’s carrying amount exceeds its recoverable amount, the asset is impaired and the carrying amount is written down to the recoverable amount. For revalued assets, the impairment loss is recognised in other comprehensive income to the extent the impairment loss does not exceed the amount in the revaluation reserve in taxpayers’ funds (equity) for that class of asset. Where that results in a debit balance in the revaluation reserve, the balance is recognised in the surplus or deficit. For assets not carried at a revalued amount, the total impairment loss is recognised in the surplus or deficit.

The reversal of an impairment loss on a revalued asset is credited to other comprehensive income and increases the revaluation reserve for that class of asset. However, to the extent that an impairment loss for that class of asset was previously recognised in the surplus or deficit, a reversal of the impairment loss is also recognised in the surplus or deficit. For assets not carried at a revalued amount, the reversal of an impairment loss is recognised in the surplus or deficit.

Trade and other receivables Trade and other receivables are recorded at estimated realisable value, after providing for impairment charges.

An impairment loss is recognised when there is objective evidence that the Trust will not be able to collect amounts due to the original terms of the receivable. Significant financial difficulties of the debtor, probability that the debtor will enter into bankruptcy, and default on payments are considered indicators that the debtor is impaired.

An impairment loss is expensed immediately in the statement of comprehensive income.

Trade and other payables Trade and other payables are initially measured at fair value and subsequently measured at amortised cost using the effective interest method. They represent liabilities for goods and services provided to the Trust prior to the end of the financial year that are unpaid and arise when the Trust becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecured and are usually paid within 30 days of recognition.

Employee benefits Short-term employee benefits Employee benefits expected to be settled within 12 months of balance date are measured at nominal values based on accrued entitlements at current rates of pay. These include salaries and wages accrued up to balance date, annual leave earned but not yet taken at balance date, sick leave and long service leave entitlements expected to be settled within 12 months.

A liability for sick leave is recognised to the extent that absences in the coming year are expected to be greater than the sick leave entitlements earned in the coming year. The amount is calculated based on the unused sick leave entitlement that can be carried forward at balance date, to the extent that it will be used by staff to cover those future absences.

Long-term employee entitlements Employee benefits that are due to be settled beyond 12 months of balance date in which the employee renders the related service, such as long service leave are calculated on an actuarial basis. The calculations are based on:  Likely future entitlements accruing to staff, based on years of service, years to entitlement, the likelihood that staff will reach the point of entitlement and contractual entitlements information; and  The present value of the estimated future cash flows.

34 Financial Statements for the year ending 30 June 2015

STATEMENT OF ACCOUNTING POLICIES (continued…) for the year ending 30 June 2015

Expected future payments are discounted using market yields on government bonds at balance date with terms to maturity that match, as close as possible, the estimated future cash outflows for entitlements. The inflation factor is based on the expected long-term increase in remuneration for employees.

Presentation of employee entitlements Salaries and wages accrued, sick leave, annual leave, vested long service leave, and non-vested long service leave and retiring leave expected to be settled within 12 months of the balance date, are classified as a current liability. All other employee entitlements are classified as a non-current liability.

Superannuation Schemes Defined contribution schemes Obligations for contributions to KiwiSaver are accounted for as defined contribution schemes and are recognised as an expense in the surplus or deficit as incurred.

Leases Finance Leases Upon initial recognition the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset.

Operating Leases Leases that are not finance leases are classified as operating leases.

Operating leases are not recognised in the Trusts statement of financial position. Payments made under operating leases are recognised in surplus or deficit on a straight line basis over the term of the lease. Lease incentives received are recognised as an integral part of the total lease expense, over the term of the lease.

Provisions The Trust recognises a provision for future expenditure of uncertain amount or timing when there is a present obligation (either legal or constructive) as a result of a past event, it is probable that an outflow of future economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not recognised for future operating losses.

Goods and Services Tax All items in the financial statements are stated exclusive of GST, except for trade debtors and creditors, which are stated on a GST inclusive basis. Where GST is not recoverable as input tax, then it is recognised as part of the related asset or expense.

The net amount of GST recoverable from, or payable to, the IRD is included as part of receivables or payables in the statement of financial position.

The net GST paid to, or received from, the IRD, including the GST relating to investing and financing activities, is classified as an operating cash flow in the statement of cash flows.

Commitments and contingencies are disclosed exclusive of GST.

Capital Management The Trusts capital comprises cash and cash equivalents, trade and other receivables, trade and other payables and loans and borrowings. Management’s objective, when managing capital, is to ensure that the Trust continues as a going concern as well as to maintain optimal returns for other stakeholders. Management also aims to maintain a capital structure that ensures the lowest cost of capital available.

35 Financial Statements for the year ending 30 June 2015

STATEMENT OF ACCOUNTING POLICIES (continued…) for the year ending 30 June 2015

Income Tax The Trust has charitable status and is exempt from income tax

Profit or loss from discontinued operations A discontinued operation is a component of the entity that either has been disposed of, or is classified as held for sale, and:  Represents a separate major line of business or geographical area of operations; or  Is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations.

Profit or loss from discontinued operations, including prior year components of profit or loss, are presented in a single amount in the statement of profit or loss and other comprehensive income. This amount, which comprises the profit or loss of discontinued operations and the gain or loss resulting from the measurement and disposal of assets classified as held for sale, is further analysed in Note 20. The disclosures for discontinued operations in the prior year relate to all operations that have been discontinued by the reporting date for the latest period presented.

Accounting policies – Changes in accounting policies For the year ended 30 June 2014, the Trust prepared its financial statements using the NZ equivalents to International Financial Reporting Standards as appropriate for Public Benefit Entities, with differential reporting concessions applied. These have now been restated to Not-For-Profit PBE IPSAS-RDR. An explanation of how the transition to Tier 2 Not-For-Profit PBE Accounting Standards has affected the reporting Statement of Financial Position and Statement of Comprehensive Revenue and Expenses is provided in Note 19 of the financial statements.

36 Financial Statements for the year ending 30 June 2015

NOTES TO THE FINANCIAL STATEMENTS for the year ending 30 June 2015

2015 2014 1. Operating Expenses $ $ Depreciation on Property, Plant and Equipment 217,522 182,913 Amortisation of intangible assets 42,207 41,562 Rental Expense on Operating Leases 2,149,003 1,954,072 Wages 17,574,933 14,781,660 Defined contribution plan 363,191 260,071 Bad and Doubtful Debts 3,301 1,435 Trustees Fees 50,500 33,360 Fees Paid to Auditors - audit of the financial statements 19,355 14,035 Fees Paid to Auditors - reviewing NZ IFRS transition - 5,320 Cleaning 154,433 91,332 Power 313,178 277,779 Communication costs 193,544 178,881 Pharmacy 80,367 69,155 Food 362,390 266,880 Allowances 316,525 311,815 Vehicle costs 464,684 458,420 Insurance 138,997 127,256 Replacement items 129,123 98,318 Other operating costs 1,186,426 852,259 Total Operating Expenses 23,759,679 20,006,523

The comparative depreciation has been adjusted to reflect actual costs in the year.

2. Contingency Reserve An amount of $110,000 is held in a Contingency Reserve within Equity. This reserve has been created to allow for payment of fines, should any arise, from the Health and Safety Act 2002.

2015 2014 3. Cash and Cash Equivalents $ $ Cash at Bank 2,840,542 2,010,873 Investments - Term Deposits 235,198 144,036 3,075,740 2,154,909 The Trust has a total bank overdraft facility of $85,000 (2014: $85,000). No funds have been borrowed by the Trust at balance date. This facility is with ANZ Bank.

The Trust has properties at 12 Erin Street, Palmerston North and 1 Ribbonwood Terrace, Porirua which are pledged as security for mortgages with ANZ Bank.

ANZ bank also hold a general security agreement over the property of the Trust.

37 Financial Statements for the year ending 30 June 2015

NOTES TO THE FINANCIAL STATEMENTS (continued…) for the year ending 30 June 2015

2015 2014 4. Receivables (from exchange transactions) $ $ Trade receivables 2,152,745 1,948,558 Sundry debtors and accruals 134,495 33,592 Prepayments 49,994 154,361 2,337,234 2,136,511

Trade receivables are non-interest bearing and are normally settled on 30 day terms, therefore their carrying values approximate their fair value.

Health of receivables All financial assets are within the contracted terms except certain trade receivables.

2015 2014 Gross Impairment Gross Impairment $ $ $ $ Not yet overdue 2,118,180 - 1,875,475 - Overdue 0 -31 days 7,508 - 9,399 - Overdue 32 - 92 days 1,524 - 1,569 - Overdue more than 93 days 25,533 - 62,114 - Total trade receivables 2,152,745 - 1,948,558 -

2015 2014 $ $ Gross trade and other receivables 2,340,535 2,137,946 Related party receivables - - 2,340,535 2,137,946 Individually impaired debts 3,301 1,435 Allowance for collectively impaired debts - - Total trade and other receivables 2,337,234 2,136,511

Individually impaired trade debts relate to customers for whom there is objective evidence of inability to pay. Generally no collateral is held for trade debts.

2015 2014 5. Payables (from exchange transactions) $ $ Current Trade Creditors 476,057 557,090 Sundry Accruals 230,481 213,508 GST 406,635 359,517 1,113,173 1,130,115

Creditors and other payables are non-interest bearing and are normally settled on 30 day terms, and therefore their carrying value approximates their fair value.

38 Financial Statements Statements Financial for the yearfor the ending 30 June 2015 NOTES TO THE FINANCIAL STATEMENTS (continued…) for the year ending 30 June 2015

Leasehold Client 6. Property, Plant and Computer Furniture and Office Lawn- Plant and Motor Improve- Assets Owned Equipment Equipment Fittings Equipment mowers Equipment Vehicles Buildings Land ments under $500 Assets TOTAL $ $ $ $ $ $ $ $ $ $ $ $

1 July 2013 Cost 390,459 666,607 88,598 25,099 169,168 371,368 361,868 310,000 181,945 358,000 70,169 2,993,281 Accumulated Depreciation 347,694 590,046 87,215 24,104 129,011 298,544 11,540 - 80,978 357,854 - 1,926,986 Carrying amount 42,765 76,561 1,383 995 40,157 72,824 350,328 310,000 100,967 146 70,169 1,066,295

Year ended 30 June 2014 Carrying amount at 1 July 2013 42,765 76,561 1,383 995 40,157 72,824 350,328 310,000 100,967 146 70,169 1,066,295

Additions 32,935 36,332 1,339 - 78,603 18,204 - - 10,663 51,023 - 229,099

Disposals - - - - 687 2,643 - - - - - 3,330 Revaluations ------Impairment losses ------Impairment losses reversed ------Depreciation 25,351 28,992 1,215 476 17,224 40,236 8,974 - 9,478 50,966 - 182,913 Carrying amount at 30 June 2014 50,349 83,901 1,507 519 100,849 48,149 341,354 310,000 102,152 203 70,169 1,109,151 39

30 June 2014 Cost 423,394 702,939 89,937 25,099 247,084 345,534 359,612 310,000 194,864 409,023 70,169 3,177,655 Accumulated depreciation 373,045 619,038 88,430 24,580 146,235 297,385 18,258 - 92,712 408,820 - 2,068,504 Carrying amount 50,349 83,901 1,507 519 100,849 48,149 341,354 310,000 102,152 203 70,169 1,109,151

Year ended 30 June 2015 Carrying amount at 1 July 2014 50,349 83,901 1,507 519 100,849 48,149 341,354 310,000 102,152 203 70,169 1,109,151 Additions 18,199 20,379 1,588 - 27,379 218,301 - - 32,504 63,243 - 381,593 Acquired - business combinations 7,976 10,534 - - 5,880 4,362 1,507,758 825,430 1,085 6,468 - 2,369,493 Disposals - - - 42 849 7,477 - - - - - 8,369 Revaluations ------Impairment losses ------Impairment losses reversed ------Depreciation 27,502 26,029 714 477 29,016 28,290 23,429 - 12,331 69,733 - 217,522 Carrying amount at 30 June 2015 49,022 88,786 2,381 - 104,243 235,045 1,825,683 1,135,430 123,409 181 70,169 3,634,347

30 June 2015 Cost or valuation 449,569 722,003 91,525 758 266,964 525,817 1,867,370 1,135,430 228,452 478,928 70,169 5,836,984 Accumulated depreciation 400,546 633,217 89,144 758 162,722 290,771 41,687 - 105,044 478,747 - 2,202,636 Carrying amount 49,022 88,786 2,381 - 104,243 235,045 1,825,683 1,135,430 123,409 181 70,169 3,634,347

The Trust has a property in Palmerston North which is pledged as security for a mortgage with ANZ Bank. Financial Statements for the year ending 30 June 2015

NOTES TO THE FINANCIAL STATEMENTS (continued…) for the year ending 30 June 2015

2015 2014 7. Intangibles and Goodwill $ $ Goodwill Cost 108,250 108,250 Accumulated impairment losses - - Carrying amount at end of year 108,250 108,250

Carrying amount at beginning of year 108,250 108,250 Additions 299,653 - Disposals 5,000 - Impairment losses - - Carrying amount at end of year 402,903 108,250

Software Cost 469,073 448,637 Accumulated amortisation 277,670 235,463 Carrying amount at end of year 191,403 213,174

Carrying amount at beginning of year 213,174 203,336 Additions 20,436 51,400 Disposals - - Amortisation 42,207 41,562 Carrying amount at end of year 191,403 213,174 Total Intangible Assets 594,305 321,424

Impairment Management has assessed the possible impairment of goodwill and judges there to be no impairment for the year.

Restrictions and pledged as security There are no restrictions over the Trust’s intangible assets, nor are there any intangible assets pledged as security for liabilities.

40 Financial Statements for the year ending 30 June 2015

NOTES TO THE FINANCIAL STATEMENTS (continued…) for the year ending 30 June 2015

8. Commitments (a) Capital commitments The Trust had no capital commitments as at 30 June 2015 (2014: nil). (b) Operating lease commitments as lessee Operating lease commitments relate to: a. Motor vehicles b. Residential property c. Photocopiers d. Premises 2015 2014 $ $ Lease commitments under non-cancellable operating leases Less than one year 1,237,723 1,305,012 Beyond one year and not later than five years 2,880,592 2,961,326 Beyond five years 2,605,852 3,138,833

a. Motor vehicles MASH Trust entered into an agreement with Custom Fleet in May 2005 for vehicle leasing. A credit facility of up to $374,000 is available to MASH Trust for the lease of vehicles.

MASH Trust entered into an agreement with Esanda/Fleet Partners in June 2006 for vehicle leasing. A credit facility of up to $400,000 is available to MASH Trust for the lease of vehicles.

MASH Trust entered into an agreement with Orix in June 2008 for vehicle leasing. A credit facility of up to $350,000 is available to MASH Trust for the lease of vehicles.

MASH Trust entered into an agreement with MTF in July 2010 for vehicle leasing. There is no credit facility available to MASH Trust for the lease of vehicles.

MASH Trust entered into an agreement with Toyota in February 2013 for vehicle leasing. A credit facility of up to $618,000 is available to MASH Trust for the lease of vehicles.

b. Residential property MASH Trust is obliged to provide a minimum of two weeks notice upon leaving a residential property. As at 30th June 2015, this commitment was $22,085.82.

c. Photocopiers MASH Trust have leased various photocopiers from Konica Minolta commencing March 2013 for a term of 5 years with monthly payments of $2,525.99.

(c) Operating lease commitments as lessor The future minimum lease payments under non-cancellable operating leases as lessor at reporting date are: 2015 2014 $ $ Less than one year 22,400 22,400 Beyond one year and not later than five years 11,200 11,200 Beyond five years - -

9. Contingent Liabilities There are no contingent liabilities as at 30 June 2015 (2014: nil).

41 Financial Statements for the year ending 30 June 2015

NOTES TO THE FINANCIAL STATEMENTS (continued…) for the year ending 30 June 2015

10. Management Contracts MASH Trust receives management fees from various organisations for carrying out management, accounting, administration and payroll duties on behalf of these Trusts. The amounts are: 2015 2014 $ $ Community Connections Supported Living Trust 68,000 68,000 Whaioro Trust 42,000 42,000 Journeys to Wellbeing 22,750 - 132,750 110,000 2015 2014 11. Loans and Borrowings $ $ Bank loans (secured) 2,105,949 236,575 Lease liability 1,547 6,070 2,107,496 242,645 Current portion Bank loans (secured) 431,744 21,165 Lease liability 4,523 3,924 Ministry of Health 25,583 - 461,850 25,089 Total Loans and Borrowings 2,569,346 267,734

2015 2014 2015 2014 2015 2014 Repayable as follows: $ $ $ $ $ $ Less than 1 year Between 1-5 years Greater than 5 years Bank loans (secured) 359,228 21,165 1,181,724 84,660 781,130 151,915 Lease liability 4,523 3,924 1,547 6,070 - - Vehicle loan 72,516 - 143,095 - - - Ministry of Health 25,583 - - - - - Total 461,850 25,089 1,326,366 90,730 781,130 151,915

2015 2014 Finance lease liabilities $ $ Minimum lease payments Less than 1 year 4,523 3,924 Between 1-5 years 1,547 6,070 Greater than 5 years - - Total future minimum lease payments 6,070 9,994 Unearned interest - - Present value of finance lease liability 6,070 9,994 Lease arrangements The Trust has motor vehicles that are held under finance lease arrangements. As of 30 June 2015 the net carrying amount of the Motor Vehicles held under finance lease arrangements (included as part of Motor Vehicles) is $7,357 (2014: $9,730) - see Note 6.

Security Bank loans are secured over properties at 12 Erin Street, Palmerston North, 12 Parliament Street, Lower Hutt and 1 Ribbonwood Terrace, Porirua. The Bank also hold a general security agreement over all property of the Trust.

Finance leases are secured over the assets to which they relate.

Bank loans for vehicle purchases are secured over the assets to which they relate. The net carrying amounts of motor vehicles under loan arrangements is $201,582 (2014: nil).

42 Financial Statements for the year ending 30 June 2015

NOTES TO THE FINANCIAL STATEMENTS (continued…) for the year ending 30 June 2015

12. Employee Entitlements Provision for employee entitlements as at 30 June 2015 is in respect of the Trusts’ liability for annual leave, long service leave and sick leave. Annual leave has been calculated on an actual entitlement basis at current rates of pay. Provision for sick leave and long service leave are calculated on an actuarial basis in accordance with International Reporting Standards. 2015 2014 Current Employee Entitlements are represented by: $ $ Annual Leave 1,370,811 1,114,461 Alternate Leave Accrual 239,105 180,590 Wages 400,017 311,760 Sick Leave 36,023 36,427 Long Service Leave 134,998 61,597 Total Current Portion 2,180,954 1,704,835 Non-current Employee Entitlements are represented by: Long Service Leave 99,890 88,686 Total Non-Current Portion 99,890 88,686

13. Financial Instruments The Trust is party to financial instrument arrangements as part of its everyday operations. These include instruments such as bank balances, debtors and receivables, and creditors and payables.

2015 2014 Classification of financial instruments $ $ Loans and receivables Cash and cash equivalents 3,075,740 2,154,909 Receivables from exchange transactions 2,337,234 2,136,511 5,412,974 4,291,420 Financial liabilities at amortised cost Trade and other payables 1,113,173 1,130,115 Loans and borrowings 2,569,346 267,734 Employee entitlements 2,280,844 1,793,521 5,963,363 3,191,370 Due to the short term nature of cash and cash equivalents, trade and other receivables and trade and other payables, their carrying value is assumed to approximate their fair value.

43 Financial Statements for the year ending 30 June 2015

NOTES TO THE FINANCIAL STATEMENTS (continued…) for the year ending 30 June 2015

14. Reconciliation of surplus with cash flows from operating activities 2015 2014 $ $ Net profit/(loss) for the year 1,147,638 727,129 Adjustments for non-cash items Depreciation 217,522 182,913 Transfer of Dawn Trust (non-cash portion) (308,884) - (Profit)/Loss on sale of property, plant and equipment (12,965) (10,000) Amortisation 42,207 41,562 Other non-cash items - - (62,121) 214,475 Changes in working capital Increase/(decrease) in trade and other payables 148,633 365,317 Increase/(decrease) in provisions - - (Increase)/decrease in trade and other receivables 68,063 (244,598) 1,302,213 1,062,323

15. Related Party Information A number of the MASH Trust Trustees also make up 50% of the Whaioro Trust Board. The following Trustees were also Trustees of Whaioro Trust during the year: - J Doolan - M Walsh - D Barrett - W Tither (term expired in March 2015) - S Mason

MASH Trust and Whaioro Trust are separately managed and operate as separate entities.

During the year MASH Trust completed accounting, administration and payroll duties on behalf of Whaioro Trust. MASH Trust received $42,000 in the year for these services (2014: $42,000). MASH Trust also received $22,400 in rent from Whaioro Trust in the year (2014: $22,400). HR consulting services were also charged to Whaioro Trust for $895 in 2015 (2014: $5,215). All transactions are on an arms length basis.

MASH Trust owns one share (0.78%) of Community Support Services ITO Limited.

Key Management Personnel Key management personnel include the Chief Executive and three managerial positions that form the Executive Management Team. 2015 2014 $ $ Salaries and other short term employee benefits 622,541 654,481 Post employment benefits 12,029 - Other long-term benefits - - Total compensation 634,570 654,481

44 Financial Statements for the year ending 30 June 2015

NOTES TO THE FINANCIAL STATEMENTS (continued…) for the year ending 30 June 2015

16. Transfer of the Dawn Trust business

The business of the Dawn Trust was transferred to MASH Trust as at 1 July 2014.

The Dawn Trust was a business operating in the Intellectual Disability sector, operating from five locations in Lower Hutt. The business was gifted to MASH Trust due to illness of the proprietor, and synergies in the way MASH Trust operates in relation to Dawn Trust.

The fair value of the assets and liabilities at acquisition date are as follows: $ Cash and cash equivalents 274,884 Receivables 268,786 Property, plant and equipment 785,410 Fair value of assets received 1,329,080

Payables 252,772 Loans and borrowings 426,348 Employee entitlements 66,192 Fair value of liabilities incurred 745,312 Net gain on transfer of business 583,768

17. Acquisition of the business of PORCH Limited

The business of PORCH Limited was acquired by MASH Trust as at 1 April 2015.

PORCH Limited was a business operating in the Intellectual Disability and Mental Health sector operating from a large residential facility in Porirua.

MASH Trust purchased the facility operated by PORCH Limited including land and buildings as well as plant and equipment. The purchase allows the Trust to expand operations in the Wellington area, and is a good fit for current facilities in Wellington and Lower Hutt.

The fair value of the assets and liabilities at acquisition date are as follows: $ Land 656,430 Buildings 927,023 Plant and equipment 1,002 Total property, plant and equipment 1,584,455

Intangible assets - goodwill 299,653 Fair value of assets received 1,884,108

Financed by: Cash reserves 184,108 Loans and borrowings 1,700,000 1,884,108

45 Financial Statements for the year ending 30 June 2015

NOTES TO THE FINANCIAL STATEMENTS (continued…) for the year ending 30 June 2015

18. Government grants, establishment of intellectual disability houses During the previous year MASH Trust recognised the Kimberley Project Establishment Grant which related to the purchase of communal assets for ex-Kimberley clients. The capital account was accounted for through equity on receipt in 2003. Equity was reduced and income recognised by $231,423 reflecting the fact that the communal assets had reached the end of their useful life (10 years) per IAS20. There has been no reduction in equity in 2015.

19. Transition to Tier 2 Not-For-Profit PBE Accounting Standards This is the Trusts first set of financial statements presented in accordance with PBE Standards.

As a result of the transition to PBE IPSAS, certain comparative figures in the Statement of Comprehensive Income have been reclassified to conform to current year presentation. These reclassifications are not significant and had no impact on the Total Comprehensive Revenue and Expense.

No adjustments were required upon adoption of PBE Standards at transition date.

20. Discontinued operations Workmates which performed lawn mowing and maintenance services both internally and for third parties was discontinued from 28 February 2015. This was due to ongoing deficits with this service. 2015 2014 $ $ Revenue 200,404 250,348 Expenses Cleaning 829 563 Communication costs 1,078 1,296 Depreciation 2,318 1,520 Insurance 3,155 3,267 Operating Expenses 11,776 49,689 Power 731 855 Rents on operating leases 21,583 20,163 Replacement items 730 1,472 Vehicle costs 10,365 24,568 Wages 152,375 205,833 204,940 309,225

Surplus/(Deficit) from discontinued operations (4,536) (58,877)

The effect of disposal on the financial position of the Trust: Lawnmowers (42) Plant and equipment (849) Motor vehicles (6,208)

Total property, plant and equipment (7,100)

46 Auditors Report

47 Artwork by Darryn Gosling, Palmerston North FOR MORE INFORMATION:

MASH Trust 602 Main Street P O Box 157 Palmerston North 4440 P 06 355-7200 P 0800 627-487 F 06 355-7201 E [email protected] W www.mashtrust.org.nz

Working Together to Achieve Great Lives